Introduction: Why Manufacturing ERP is Different
If you're a Sri Lankan manufacturer—apparel, food & beverage, furniture, packaging—you already know: manufacturing is complex.
Standard ERP
Tracks what you buy and sell
Manufacturing ERP
Tracks what you MAKE
The Reality:
If you're manufacturing with Excel, you're losing 10-15% of potential profit to inefficiency (material waste, production delays, quality issues, overtime).
What is MRP (Material Requirements Planning)?
MRP = The Brain of Manufacturing ERP
WHAT
materials do I need?
HOW MUCH
do I need?
WHEN
do I need it?
❌ Without MRP (Excel)
- Manual calculation (2 hours)
- Prone to mistakes
- Can't handle complexity
- No visibility
100 chairs × 4 legs = 400 legs... wait, how much wood?
✅ With MRP (ERP)
- Automatic calculation (30 seconds)
- Zero mistakes
- Handles unlimited complexity
- Complete visibility
Reads BOM → Calculates all requirements → Generates orders
The 7 Essential Manufacturing Modules
Module #1: Bill of Materials (BOM)
Recipe/formula for each product you manufacture
BOM Example: Men's T-Shirt
Materials:
• Cotton fabric: 1.2m
• Polyester thread: 50m
• Label: 1 piece
• Poly bag: 1 piece
Operations:
• Cutting: 5 min
• Sewing: 20 min
• QC: 2 min
• Packing: 1 min
Why BOMs are Critical:
- Accurate costing: Know exact product cost
- Auto planning: System calculates requirements
- Consistency: Same quality every batch
- Compliance: ISO, HACCP, buyer audits
Module #2: Production Planning
WHAT, WHEN, HOW MUCH to make
Sales orders → MRP run → Capacity check → Production schedule
Module #3: Shop Floor Control
Real-time production tracking
Tablets at workstations → Real-time data → Instant alerts
Module #4: Inventory (Manufacturing)
Raw, WIP, Finished Goods
Batch tracking, expiry management, multi-location, FEFO logic
Module #5: Quality Management
Inspections & compliance
Incoming, in-process, final inspection. ISO/HACCP/buyer audits
Module #6: Cost Accounting
Standard vs Actual costs
Variance analysis. Know exactly where profit/loss comes from
Module #7: Capacity Planning
Can we fulfill orders?
Machine hours, labor hours, material availability. Realistic schedules
Manufacturing KPIs to Track in ERP
Production Efficiency
OEE (Overall Equipment Effectiveness)
85%+
Target (World-class)
Cycle Time: Raw → Finished
First-Pass Yield: 98%+ target
Inventory Metrics
Inventory Turnover
6-12×
Target for manufacturing
Days Inventory: 30-60 days
WIP Value: Minimize
Quality Metrics
Defect Rate (DPMO)
<1,000
Six Sigma target
Scrap Rate: <3% target
Customer Returns: <0.5%
Real Sri Lankan Manufacturer Examples
Katunayake Apparel Manufacturer (45 employees)
Industry: Apparel (export to EU/USA)
Before ERP:
Planning: 8 hrs/week
Excess inventory: 15%
After ERP:
Planning: 1 hr/week
Inventory down 20%
Result: LKR 2.4M/year savings, On-time delivery 94% → 98%
ROI
9 months payback
Negombo Food Manufacturer (28 employees)
Industry: Biscuits (6-month shelf life)
Challenge: LKR 300K/year expired stock waste
Solution: ERP expiry tracking + FEFO logic
Result: Expiry waste reduced 90% (LKR 270K/year saved)
90%
Waste reduction
Galle Furniture Manufacturer (35 employees)
Industry: Wooden furniture (custom + stock)
Before: Paper job cards, problems discovered afternoon, overtime common
After: Tablets at workstations, real-time dashboard, instant alerts
Result: Overtime -40%, On-time delivery 78% → 92%
40%
Overtime reduction
The Transformation for Sri Lankan Manufacturers
Before ERP (Typical)
10-15%
Material wastage
70-80%
On-time delivery
90-120
Inventory days
3-5%
Defect rate
After ERP (Well-Implemented)
3-5%
Material wastage
95%+
On-time delivery
45-60
Inventory days
<1%
Defect rate
ROI for Manufacturers: Typically 6-12 months payback
(Faster than most industries due to measurable efficiency gains)
Manufacturing ERP Transforms Sri Lankan Factories
Manufacturing in Sri Lanka is competitive. Buyers have options (Bangladesh, Vietnam, India).
ERP Gives You the Edge:
- Lower costs (efficiency)
- Better quality (consistency)
- Faster delivery (planning)
- Compliance (documentation)
Your Next Steps:
- Audit current processes
- Calculate waste & delays
- Define requirements
- Shortlist vendors
- Pilot approach
Your competitors are implementing ERP. Don't get left behind.
Assess Your Manufacturing Readiness
Take our free 5-minute assessment to get your readiness score, gap analysis, and personalized 90-day action plan. Know exactly what you need to fix before implementing ERP.
📊 Take Readiness AssessmentIncludes: 25 questions • Readiness score • Gap analysis • Action plan • Industry benchmarks
📚 Related Articles
Building Your ERP Project Team
Team structure for successful implementation.
ERP Modules Explained
Understand all manufacturing modules.
How to Calculate ERP ROI
Justify manufacturing ERP investment.
8 Implementation Mistakes to Avoid
Common pitfalls for manufacturers.
Manufacturing business looking to implement ERP? Contact us for a free manufacturing readiness assessment.
About ChaosHub: We help Sri Lankan manufacturers choose and implement the right ERP systems. From apparel to food to furniture—we understand your industry.
Introduction: Why Manufacturing ERP is Different
If you're a Sri Lankan manufacturer—apparel, food & beverage, furniture, packaging—you already know: manufacturing is complex.
Standard ERP
Tracks what you buy and sell
Manufacturing ERP
Tracks what you MAKE
The Reality:
If you're manufacturing with Excel, you're losing 10-15% of potential profit to inefficiency (material waste, production delays, quality issues, overtime).
What is MRP (Material Requirements Planning)?
MRP = The Brain of Manufacturing ERP
WHAT
materials do I need?
HOW MUCH
do I need?
WHEN
do I need it?
❌ Without MRP (Excel)
- Manual calculation (2 hours)
- Prone to mistakes
- Can't handle complexity
- No visibility
100 chairs × 4 legs = 400 legs... wait, how much wood?
✅ With MRP (ERP)
- Automatic calculation (30 seconds)
- Zero mistakes
- Handles unlimited complexity
- Complete visibility
Reads BOM → Calculates all requirements → Generates orders
The 7 Essential Manufacturing Modules
Module #1: Bill of Materials (BOM)
Recipe/formula for each product you manufacture
BOM Example: Men's T-Shirt
Materials:
• Cotton fabric: 1.2m
• Polyester thread: 50m
• Label: 1 piece
• Poly bag: 1 piece
Operations:
• Cutting: 5 min
• Sewing: 20 min
• QC: 2 min
• Packing: 1 min
Why BOMs are Critical:
- Accurate costing: Know exact product cost
- Auto planning: System calculates requirements
- Consistency: Same quality every batch
- Compliance: ISO, HACCP, buyer audits
Module #2: Production Planning
WHAT, WHEN, HOW MUCH to make
Sales orders → MRP run → Capacity check → Production schedule
Module #3: Shop Floor Control
Real-time production tracking
Tablets at workstations → Real-time data → Instant alerts
Module #4: Inventory (Manufacturing)
Raw, WIP, Finished Goods
Batch tracking, expiry management, multi-location, FEFO logic
Module #5: Quality Management
Inspections & compliance
Incoming, in-process, final inspection. ISO/HACCP/buyer audits
Module #6: Cost Accounting
Standard vs Actual costs
Variance analysis. Know exactly where profit/loss comes from
Module #7: Capacity Planning
Can we fulfill orders?
Machine hours, labor hours, material availability. Realistic schedules
Manufacturing KPIs to Track in ERP
Production Efficiency
OEE (Overall Equipment Effectiveness)
85%+
Target (World-class)
Cycle Time: Raw → Finished
First-Pass Yield: 98%+ target
Inventory Metrics
Inventory Turnover
6-12×
Target for manufacturing
Days Inventory: 30-60 days
WIP Value: Minimize
Quality Metrics
Defect Rate (DPMO)
<1,000
Six Sigma target
Scrap Rate: <3% target
Customer Returns: <0.5%
Real Sri Lankan Manufacturer Examples
Katunayake Apparel Manufacturer (45 employees)
Industry: Apparel (export to EU/USA)
Before ERP:
Planning: 8 hrs/week
Excess inventory: 15%
After ERP:
Planning: 1 hr/week
Inventory down 20%
Result: LKR 2.4M/year savings, On-time delivery 94% → 98%
ROI
9 months payback
Negombo Food Manufacturer (28 employees)
Industry: Biscuits (6-month shelf life)
Challenge: LKR 300K/year expired stock waste
Solution: ERP expiry tracking + FEFO logic
Result: Expiry waste reduced 90% (LKR 270K/year saved)
90%
Waste reduction
Galle Furniture Manufacturer (35 employees)
Industry: Wooden furniture (custom + stock)
Before: Paper job cards, problems discovered afternoon, overtime common
After: Tablets at workstations, real-time dashboard, instant alerts
Result: Overtime -40%, On-time delivery 78% → 92%
40%
Overtime reduction
The Transformation for Sri Lankan Manufacturers
Before ERP (Typical)
10-15%
Material wastage
70-80%
On-time delivery
90-120
Inventory days
3-5%
Defect rate
After ERP (Well-Implemented)
3-5%
Material wastage
95%+
On-time delivery
45-60
Inventory days
<1%
Defect rate
ROI for Manufacturers: Typically 6-12 months payback
(Faster than most industries due to measurable efficiency gains)
Manufacturing ERP Transforms Sri Lankan Factories
Manufacturing in Sri Lanka is competitive. Buyers have options (Bangladesh, Vietnam, India).
ERP Gives You the Edge:
- Lower costs (efficiency)
- Better quality (consistency)
- Faster delivery (planning)
- Compliance (documentation)
Your Next Steps:
- Audit current processes
- Calculate waste & delays
- Define requirements
- Shortlist vendors
- Pilot approach
Your competitors are implementing ERP. Don't get left behind.
Assess Your Manufacturing Readiness
Take our free 5-minute assessment to get your readiness score, gap analysis, and personalized 90-day action plan. Know exactly what you need to fix before implementing ERP.
📊 Take Readiness AssessmentIncludes: 25 questions • Readiness score • Gap analysis • Action plan • Industry benchmarks
📚 Related Articles
Building Your ERP Project Team
Team structure for successful implementation.
ERP Modules Explained
Understand all manufacturing modules.
How to Calculate ERP ROI
Justify manufacturing ERP investment.
8 Implementation Mistakes to Avoid
Common pitfalls for manufacturers.
Manufacturing business looking to implement ERP? Contact us for a free manufacturing readiness assessment.
About ChaosHub: We help Sri Lankan manufacturers choose and implement the right ERP systems. From apparel to food to furniture—we understand your industry.
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